New Delhi: The automotive industry in India has expanded exponentially. The Indian industry is now the fourth largest in the world. Therefore, the organization in the field has demanded that the business of distributing vehicles needs to be given industry status.
The demand was made at a conference of the Federation of Automobile Dealers Association. If the auto distribution sector is given industry status, then banks will be able to lend generously to this sector. At the same time, it will be easier for the automotive industry to raise capital from home and abroad. The industry will further develop once capital is made available to the sector.
Because in the coming period, there will be more revolutionary changes in the automotive sector in India. In this connection, the president of the association Vinkesh Gulati said that 45 lakh people work in the vehicle distribution sector. The sector pays taxes of Rs 95,000 crore directly and indirectly to the government. This industry requires more capital. So distributors have to pull at the individual level to raise capital. If the sector is given industry status, distributors will be able to get easy loans from banks and other financial institutions.
There is a need to build this industry in a modern way instead of the traditional way. For this, there is a need for this business to get the status of an industry. He suggested that automakers should urge the government to do the same. The number of vehicles per capita in India is still very low. Now the growth rate is going to increase. At the same time, the income of the citizens is likely to increase. In such a scenario, vehicle sales will increase.
For that, the distributor network needs to be strengthened. But it requires capital. If this business is given the status of an industry, many problems of the distributors can be solved. It will also help to create distributors in areas where there are no distributors. Citizens in non-distributor areas have more difficulty in purchasing and maintaining vehicles. So they avoid taking vehicles.
